Public sector pay policy: technical guide - April 2025

1. Introduction

Contextual Overview

1.1 The Scottish Government Public Sector Pay Policy Technical Guide serves as a critical tool in implementing the Scottish Government’s commitment to delivering fair, sustainable, and responsible pay settlements across the public sector. This guide underpins the principles of transparency, fairness, and fiscal responsibility, providing a framework for public sector employers to determine pay remits in alignment with broader governmental priorities as set out in the published pay policy.

1.2 The policy reflects the Scottish Government’s continued focus on addressing key economic and social challenges and promoting pay equality across Scotland’s public sector workforce. It also supports the Scottish Government’s overarching objectives of ensuring efficient use of public funds while maintaining fair and competitive remuneration that attracts and retains talent in vital public sector roles.

Purpose

1.3 This Technical Guide, in conjunction with the current Scottish Government Pay Policy, provides comprehensive guidance for developing staff pay remits for public bodies. It also includes specific instructions regarding pay arrangements for senior appointments such as Chief Executives, as well as remuneration for Chairs, Board Members, and Public Appointees.

1.4 Public sector employers are expected to explore fair and sustainable pay levels in dialogue with trade unions considering associated funding options and living within their budget. Public bodies pay negotiations should be with their recognised trade unions except in the small number of Non-Departmental Public Bodies with no recognised trade unions where dialogue is with respective employee/staff representatives.

1.5 The current and previous Scottish Government Pay Policies are available on the Scottish Government website at:

Public sector pay web pages

Public Sector Pay Policy coverage

1.6 The information in this Technical Guide is for employers in the relevant public bodies listed on the public sector pay web pages although their trade unions and employees may also find it of interest. It should be read alongside the most current published pay policy also found on the public sector pay pages. A list of all public bodies is available at: National public bodies: directory - gov.scot (www.gov.scot).

1.7 The Pay Policy also applies to all public appointments under the auspices of the Scottish Ministers. This includes, but is not limited to:

• all public appointments to Non-Departmental Public Bodies (NDPBs) and Public Corporations
• Non-executive Directors of the Scottish Government and its agencies and associated departments
• Chairs and Board Members of public bodies
• Chairs and Board Members of short-life and ad hoc working groups, etc
• Appointments to Tribunals, Appeal Boards, Advisory Committees and Inquiries
• Appointments to lead Reviews, Inquiries etc

1.8 In addition, the Pay Policy sets the pay metric for all major public sector workforce groups across Scotland including NHS Scotland^[1], fire-fighters, police officers, teachers and further education workers. For local government employees, pay and other employment matters are delegated to local authorities.

Senior Civil Servants and other senior staff

1.9 The Pay Policy does not apply to the remuneration of Senior Civil Servants as this is a reserved matter and operates within the UK Cabinet Office pay and performance management framework. The Pay Policy applies to all other senior staff below Chief Executive in the relevant public bodies. Separate arrangements for Chief Executives are set out in the Chief Executive chapter of this technical guide.

Role and Responsibilities

Role and responsibilities of the public body

1.10 The public body is responsible for determining the pay and conditions for its staff that are appropriate for its business needs and which take account of and comply with the Scottish Government’s Public Sector Pay Policy and processes. Where applicable, the public body’s Remuneration Committee must be aware of all pay proposals for: staff, Chief Executive, Public and Ministerial Appointments, including Chairs and Board Members.

1.11 Each public body is expected to submit its staff pay proposals to the Scottish Government in sufficient time to ensure that they can implement their pay settlement as close to the date on which it is due (which for the majority of public bodies is 1 April). Engagement should be conducted through the designated Sponsor Teams, who will serve as the primary point-of-contact and consult with other relevant departments or stakeholders within the Scottish Government as necessary to ensure the proposals are reviewed comprehensively and align with the Public Sector Pay Policy framework.

1.12 Public bodies are expected to engage in early scoping discussions with their staff and trade unions / staff representatives in preparing their staff pay proposals, as part of a collaborative and constructive approach to the pay process.

1.13 Public bodies are encouraged to discuss their draft proposals with the Sponsor Team before they formally submit their proposals. Where appropriate the Public Sector Pay team should be included. This will help reduce the time required for getting approval to the negotiating remit.

Role and responsibilities of the Chief Executive

1.14 The Chief Executive, as Accountable Officer^[2], has the responsibility to provide assurance that staff pay proposals are in line with the Pay Policy. They must ensure there are robust performance management systems in place to support any progression payments. They must also ensure that assumptions and/or commitments on affordability and sustainability are realistic and will be delivered during the duration of the pay remit.

1.15 It is therefore assumed all completed proforma providing this confirmation are submitted either by or on behalf of the Chief Executive or Accountable Officer on this basis.

Role and responsibilities of the Chair/Board

1.16 The Chair/Board has the responsibility to develop remuneration proposals for their Chief Executive on any new or reviewed remuneration package and ensuring Scottish Government approval is obtained, through the Sponsor Team, prior to advertising, agreeing or implementing such proposals.

Role and responsibilities of the trade unions

1.17 It is expected that trade unions and/or staff representatives will want to participate in early engagement with their public body as part of a collaborative and constructive pay dialogue. However, pay negotiations must not be concluded until the staff pay remit has been formally approved.

Role and responsibilities of the Sponsor Team

1.18 In conjunction with the relevant Finance Business Partner, Sponsor Teams are responsible for considering and confirming the affordability and sustainability of remuneration proposals and seeking formal approval for them.

1.19 Sponsor Teams are responsible for ensuring their Public Bodies are fully informed about the Scottish Government’s Public Sector Pay Policy and the associated processes. Their primary purpose is to act as a bridge between the public bodies and the Scottish Government, providing guidance on policy requirements and expectations. Sponsor Teams are responsible for advising the Public Sector Pay team on the affordability and sustainability of pay proposals, particularly in relation to business efficiencies and workforce changes. Additionally, they are tasked with identifying and communicating any issues or contextual factors that could influence the assessment of pay proposals, ensuring that the Public Sector Pay team has a comprehensive understanding of factors that may impact the evaluation process.

1.20 Sponsor Teams are also responsible for considering, along with the Public Sector Pay team, any remuneration proposals for Chief Executives, Chairs, Board Members and Public Appointments (whether or not the Public Appointment is linked to a public body). If a new Chair is appointed to a public body, it is the role of the Sponsor Team to inform them of the Public Sector Pay Policy and this Technical Guide.

1.21 Further detail on the role and responsibilities of the Sponsor Team is set out in section 3 of this guide.

Role and responsibilities of the Scottish Government Finance Business Partner

1.22 In conjunction with the relevant Sponsor Team, the Finance Business Partner is responsible for considering and confirming the affordability and sustainability of remuneration proposals and seeking formal approval for them.

1.23 The Finance Business Partner is responsible for providing comment on the affordability of the proposals within agreed budget allocations (taking into account delivery of efficiency savings and any workforce reforms) and on whether the proposals offer value for money.

Role and responsibilities of the Public Sector Pay team

1.24 The role of the Public Sector Pay team is to ensure all pay proposals are in line with the Scottish Government’s Public Sector Pay Policy. Through engagement with Sponsor Teams and other stakeholders, the Public Sector Pay team can provide advice to the Sponsor Team before a public body formally submits its pay remit. This may be on any technical issue that arises during the scoping discussions between public bodies and their trade unions and/or staff representatives or in the development of remuneration proposals for Chief Executives or Public Appointments including Chairs and Board Members. The Public Sector Pay team can provide advice to the Sponsor Team to ensure the proforma and the business case include all necessary information.

1.25 The Public Sector Pay team provides the main interface between Sponsor Teams and public bodies with the Remuneration Group. It is their role to advise Senior Officials, the Remuneration Group and Ministers on the wider impact of all pay and remuneration proposals.

Role and responsibilities of Scottish Government Senior Officials

1.26 Senior Officials include Directors, Director Generals and the Permanent Secretary. For NDPBs and Public Corporations, the Director of the relevant sponsoring directorate is responsible for ensuring good governance within their public bodies in respect of the Public Sector Pay Policy, the processes and where appropriate approving proposals. The Director for Budget and Public Spending is responsible for approving for Public Sector Pay Policy interests. These Senior Officials have the option to refer proposals to Remuneration Group when they consider they are of sufficient interest.

1.27 The relevant Director General will take on this role in relation to Agencies and to Public Appointments not linked to a public body. The Permanent Secretary takes this role for associated departments, the Scottish Government’s main bargaining unit and the Scottish Government Marine (offshore) bargaining unit.

Role and responsibilities of the Remuneration Group

1.28 The Scottish Government’s Remuneration Group is chaired by a Non-Executive Director of the Scottish Government. The group meets regularly throughout the year and its remit includes making sure a consistent approach is taken to approval of pay remits for staff, and to remuneration of Chief Executives and Public Appointments.

1.29 When required, the Remuneration Group will consider pay or remuneration proposals and will decide whether or not proposals need to be referred to Ministers.

1.30 Details of the current membership of the Remuneration Group, meeting dates and the deadlines for papers are set out on the Scottish Government’s Public Sector Pay webpages, available at: Remuneration Group.

Role and responsibilities of Scottish Ministers

1.31 If Ministerial approval is required, the proposals will need to be approved by the relevant Portfolio Cabinet Secretary or Minister and the Cabinet Secretary for Finance. Referrals to Ministers must include Remuneration Group advice.